GNMA CPR % by Age (months)

GNMA prepays hardly follow the traditional PSA curve.  As the graph above shows, prepay speeds are essentially non-existent for the first six months of life of government loans.  Subsequent to the “lock-out” period, however, they soar.  While this escalation historically has lasted only one or two months, it is  interesting to note that during February and March of this year, it extended out for six months.  Subsequent to this “escalation” period, CPRs tend to remain relatively flat, at least, through five years of age. Why guess on projected speeds, when you can be right? Good data leads to good decisions: get in touch with Level1Analytics® Powered by Intraprise.

About Dr. Tom, CMB

Dr. Thomas J. Healy, CMB, Co-Founder & Chief Innovation Officer at Level1Analytics® Powered by Intraprise, has over 30 years of unmatched experience in financial valuation and value modeling. Prior to creating Level1Analytics, Dr. Healy held several executive-level positions at top lending institutions, notably working for David Rockefeller at Chase Manhattan Bank early in his career. Dr. Healy's experience extends beyond the US market; he has worked on assignments in Hong Kong, Bangalore, and Moscow.

Dr. Healy obtained his Bachelor of Science degree in Mathematics and Economics; Master’s degree in Business Administration, specializing in Banking; and a Doctorate degree in Business Administration with an emphasis on the business application of information technology. He holds the Certified Mortgage Banker designation. Receiving his doctorate at age 50, Dr. Healy passionately believes that continued, lifelong education is a powerful tool for success.

A Master Faculty Fellow and Dean of the Faculty of the Mortgage Bankers Association, Dr. Healy is a frequent lecturer and author on asset optimization topics to the financial services industry. His text on mortgage servicing rights, Servicing Portfolio Evaluation and Management: A Financial Perspective, published by the Mortgage Bankers Association, is in its second edition (2007).